Self-Regulation in Securities Markets

Carson, John

关键词: ARBITRAGE;    ARBITRATION;    ASSET MANAGEMENT;    ASSET MANAGERS;    BIDS;   

DOI  :  10.1596/1813-9450-5542
RP-ID  :  WPS5542

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper canvasses the trends inself-regulation and the role of self-regulation insecurities markets in different parts of the world. Thepaper also describes the conditions in which self-regulationmight be an effective element of securities marketsregulation, particularly in emerging markets. Use ofself-regulation and self-regulatory organizations is oftenrecommended in emerging markets as part of a broaderstrategy aimed at improving the effectiveness of securitiesregulation and market integrity. According to theInternational Organization of Securities Commissions,reliance on self-regulation is an optional feature of aregulatory regime. Self-regulatory organizations may supportbetter-regulated and more efficient capital markets, but thevalue of self-regulation is again being questioned in manycountries. Forces such as commercialization of exchanges,development of stronger statutory regulatory authorities,consolidation of financial services industry regulatorybodies, and globalization of capital markets are affectingthe scope and effectiveness of self-regulation -- and inparticular the traditional role of securities exchanges asself-regulatory organizations.The paper reviews differentmodels of self-regulation, including exchangeself-regulatory organizations, member (or independent)self-regulatory organizations, and industry or dealers associations. It draws on examples of self-regulatoryorganizations from many markets to illustrate the degree ofreliance on self-regulation, as well as the range offunctions for which self-regulatory organizations areresponsible, in markets around the world. Issues that areimportant to the effective operation of self-regulatoryorganizations are discussed, such as corporate governance,managing conflicts of interest, and regulatory oversight bygovernment authorities.